Heavy Local Docket This Week & A New FI Futures Contract To Trade

Futures are a touch flatter vs. settlement in early Sydney dealing, with YM -0.5 and XM +1.0, given the flattening impetus for U.S. Tsys witnessed in Friday's holiday thinned/shorted U.S. trading session. Little to note in terms of the AU/U.S. 10-Year yield spread, which continues to hover around the +5bp mark.

• We should also flag that Monday represents the first Sydney session for the new 5-Year bond futures contract (BBG code VTA), which holds a March '21 expiry. The underlying bond basket for that contract is comprised of ACGB Nov '25, Apr '26, Sep '26 & Apr '27.
• Domestic weekend news flow has focused on Sino-Aussie relations, given China's imposition of tariffs on Australian wine at the backend of last week. Focus now moves to the potential for the matter to be escalated to the WTO. Elsewhere, a breach of COVID-19 quarantine by one individual in Adelaide has triggered calls for increased testing in the surrounding area.
• Bills are unchanged to -1 through the reds.
• There are plenty of local risk events to draw interest in the coming week, with the latest monthly private sector credit data and Q3 GDP partials providing the points of interest on Monday. We will also see the latest round of ACGB purchases from the RBA.